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Supply Chain Management in the New Millenium

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It has become apparent the effects of globalization has changed the marketplace so much in the past few decades that a much faster response is demanded from producers and their supply chain. This is done by effective supply chain management, which is the integration of key business processes acrosss the supply chain within organisiations. The objective of this is to create a system of best value for the entire supply chain including the consumer. In recent years, many firms have realised the importance of the optimization and streamlining of the supply chain management processes, it has since become the focus for many firms. Mangaing the supply chain has been seen to increase productivity and consumer satisfaction which leads to a growth in sales and overall company performance. Zara is the optimum example of a company that has effectively maintained and updated it supply chain management process to best benefit its consumers in todays marketplace. They were the first retailer to adopt the strategy of “fast fashion”. Aiming to have a product in store within 15 days of its inception. This has made them excel in todays economy to become the third biggest retailer in the world. It is widely recognized that Zara’s supply chain is what gives it it’s compeditive advantage over competing retailers. With the growth of the internet, real time information, changing consumer behaviour and technology SCM has changed greatly over time. There is some disagreement over what processes should be considered. However Charu Chandra & Sameer Kumar have correctly pinpointed the main areas to be focused on in todays marketplace: • Organizational structures • Supplier & Distributor relationships • Overall supply chain coordination • Improved inter & ... ... middle of paper ... ... Works Cited Susan Berfield & Miguel Baigorri, “Zara’s Fast Fashion Edge” Business Week, November 13th 2013 Supply Chain Management in theory and practice: a passing fad or fundamental change? Charu Chandra & Sameer Kumar, Industrial Management & Data Systems Heckmann, Shorten, Engel (2003) Supply Chain management at 21: The hard road to adulthood Supply Chain Management in theory and practice: a passing fad or fundamental change? Charu Chandra & Sameer Kumar, Industrial Management & Data Systems Hammer, Michael, “The Superefficient Company,” Harvard Business Review, Vol 79, No 9 (2001) Page 84 "Rapid-Fire Fulfillment," Harvard Business Review, Vol. 82, No.11, November 2004 Susan Berfield & Miguel Baigorri, “Zara’s Fast Fashion Edge” Business Week, November 13th 2013 "Rapid-Fire Fulfillment," Harvard Business Review, Vol. 82, No.11, November 2004.
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